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Home My WebLink About7C, Tax Increment District #3 Plan Modification__ _ _ _ _ _ _ _ _ _ _ . _ __. . _ _ _ _ _ __ _ _ _ _. _ _ _ ___ _ _ _ _ EN HI LLS Re uest for Council Action q Prepared By: Sue Iverson, Finance Dir/Treasurer Council Meeting Date: October 12, 2009 Tax Increment District No. 3 Plan Modification (Cottage Villa) Budgeted Amount: Actual Amount: Funding Source: $0 $2,000 (est.) EDA Tax Incr Distr #3 Fund Recommendation: i. Motion to adopt Resolution 2009-028, a resolution calling for a public hearing by the City Council on the proposed adoption of a modification to the development program for Development District No. 1 and the proposed adoption of a modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 3. Supportin� Documents: 1. See the attached memo from Sue Iverson, dated October 12, 2009 2. See the attached memo from Shelly Eldridge, Ehlers & Associates, dated October 6, 2009 3. See the attached Schedule of Events 4. See the attached Resolution 2009-028 ��. EN HILLS MEMORANDUM DATE: October 12, 2009 TO: Honorable Mayor and City Council Members Ron Moorse, City Administrator FROM: Sue Iverson, Finance Director/Treasurer SUBJECT: Tax Increment District No. 3 Plan modification (Cottage Villa) Back�round The Cottage Villa TIF district is set to expire on December 31, 2009. State Statute allows the City to extend the district until December 31, 2019. There have been some discussions with the City Council about extending the district and possibly using the remaining funds for other housing proj ects in the City such as the Arden Village, the Old City Hall Property, or the B2 District. Discussion Staff has contacted our �nancial advisors and they have identified possible options as presented in the attached memo from Shelly Eldridge. We may extend the district with the intent of using these funds on future proj ects such as the Arden Village, the Old City Hall Property, or the B2 District. If none of these proj ects materialize, we may decertify the district at any time and return the increment to the County for redistribution to the taxing authorities. Extending the district allows the City the most flexibility for future proj ects that might require assistance. In order to extend the district, the attached Schedule of Events or timeline has been provided as steps needed to achieve this extension. Council Action Staff recommends a motion to adopt Resolution 2009-028, a resolution calling for a public hearing by the City Council on the proposed adoption of a modification to the development program for Development District No. 1 and the proposed adoption of a modi�cation to the Tax Increment Financing Plan for Tax Increment Financing District No . 3 . City Council Meeting \�1Vletro-inet\ardenhills�Admin\Council�.Agendas & Packet Information\2009\ 10-12-09 Regular�Packet Information\Cottage_Village_TIF_Dist Ext.doc Page 1 of 1 �€� � Sue Iverson, Finance Director City of Arden Hills �� Shelly Eldridge, Financial Advisor �� °�� October 6, 2009 Tax Increment District No. 3 Plan modification B ackground : The City created Tax Increment Financing District No 3 as a housing district to reimburse Cottage Villas of Arden Hills Limited Partnership for certain costs associated with the Cottage Villas development. The development agreement provided a payment schedule through February 1, 2010 for payment of increment received through December 2009. The current Tax Increment Plan is consistent with the Developer Agreement schedule requiring the district to be decerti�ed on December 31, 2009. The tax increment law allows a maximum duration of 26 years of increment for housing districts. The law allows tax increments from housing districts to be spent anywhere in the City as long as the expenditures are used for a proj ect, or a portion of a proj ect, intended for occupancy, by persons or fami lies of low and moderate income. Options: 1) 2) 3) 4) Identify potential housing proj ects that may require assistance and extend the District to the statutory maximum duration of December 31, 2019. If the district is extended and there are no imminent proj ects, the city may determine that is appropriate to return some, or all, increment to the County for redistribution to the taxing authorities at any time. If the district is extended, and no projects materialize, the city may decertify the district at a late date. Leave the plan as is and allow district to be decertified on December 31, 2009. Options 1, 2 and 3 allow the City the most flexibility for future assistance to projects. Council Action: If the Council determines that extending the District is the best course of action, the attached resolution, calling for a public hearing to be held on December 14, 2009, would need to be passed. This would start the modi�cation process according to the schedule. The modi�cation to the TIF Plan would include the duration extension and a budget change. In addition, a modi�cation to the Development Distrlct would be made to update the Development Plan to include the changes being made for TIF District 3. The modi�cations would need to be completed before December 31, 2009. If no action is taken by the Council, the County will decertify District No. 3 as of December 31, 2009. .:...: . .. z : _ �� . ��il��, �� W � '� �� .a . . ... .. ��.�� :�c,�� :��:: ��: �� M��m�� m��`�m�� ri��1��w�r��.�� SCHEDULE 4F EVENTS CITY OF ARDEN HILLS RAMSEY COUNTY, MINNESOTA FOR THE MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE MODIFICATION TO THE T��X INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3 (a housing district) Draft as of September 16, 2009 September 25, 2009 Modification information, including maps, for drafting necessary documentation sent to Ehlers. October 12, 2009 City Council calls for a public hearing on the proposed Modification to the Development Program for Development District No. 1 and the proposed Modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 3. November 2, 2009 Letter received by County Commissioner giving notice of potential modification to a housing tax increment financing district (at least 3 0 days prior to publication of public hearing notice.) �Ehlers will fax and mail on o� befo�e Noveynber 2, 2009.J November 13, 2009 Fiscal/economic implications received by School Board Clerk and County Auditor (at least 30 days prior to public hearing). [Ehle�s will fax and mail on o� before Novembe� 13, 2009.J November 20, 2009 Ehlers conducts internal review of the Modi�cations. December 2, 2009 Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to hearing). �New B�ighton-Shoreview-A�den Hills Bulletin publication deadline: Novembe� 24, 2009 @ 3: 00 P.M. — Ehle�s will submit notice, map, and instr�uctions on o� befor�e Novembe� 24, 2009, via email to legals��lillienews. com.J December 9, 2009 Planning Commission reviews Modi�cations to determine if they are in compliance with City's comprehensive plan and adopts a resolution approving the Modifications. December 14, 2009 City Council holds a public hearing at 7:00 P.M. on the Modification to the Development Program for Development District No. 1 and the Modification of Tax Increment Financing District No. 3 and passes resolution approving the Modifications. �Ehle�s will email Council packet informatzon to the City on December 7, 2009.J By December 31, 2009 Ehlers �les Modifications with the 1�7N Department of Revenue, Office of the State Auditor, and Ramsey County. . fi�;;; ��... �{�:�K.:..: ��...: E W L � .��..:;«.«. � ,,,:`��::�:. xv,..:�\\��.. :: k ::<:>:;�>� ''`',�t" •;Q�k t�+y�:v4]S::? Q'?�v� E :\\�':::�.,9y\o ��'`'�;?4�"�:��'`}. LL-�'1QERS IN FL'EiLiC FI�Vf1N(:E x,,��`.� ; _ � CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 2009-028 RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL ON THE PROPOSED ADOPTION OF A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE PROPOSED ADOPTION OF A MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 3. BE IT RESOLVED by the City Council (the "Council") for the City of Arden Hills, Minnesota (the "City"), as follows: Section l. Public Hearin�. This Council shall meet on December 14, 2009, at approximately 7:00 P.IvI., to hold a public hearing on the proposed adoption of a Modification to the Development Program for Development Dls�rlct No. 1 and the proposed adoption of a Modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 3, which are referred to collectively hereln as the "Modificatlons", all pursuant to and in accordance with Minnesota Statutes, Sections 469.124 to 469.134, and Sections 469.174 to 469.1799, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and Section 2. Notice of Public Hearin , Filin� of Modi�cations. City staff is authorized and directed to work with Ehlers & Associates, Inc., to prepare the Modifications and to forward documents to the appropriate taxing jurisdictions including Ramsey County and Independent School District No. 621. The City Administrator is authorized and directed to cause notice of the hearing, together with an approprlate map as requlred by law, to be published at least once in the official newspaper of the City not later than 10, nor more than 30, days prior to December 14, 2009, and to place a copy of the Modifications on file ln the City Administrator's office at City Hall and to make such copy available for inspection by the public. Dated: October 12, 2009 ATTEST: Adopted: Stan Harpstead, Mayor Ron Moorse, City Administrator